Historical data for a local manufacturing company show that the average number of defects per product produced is 2. In addition
, the number of defects per unit is distributed according to a Poisson distribution. Determine the standard deviation of the number of defects for 32 units.
For a poisson distribution, the variance is equal to the mean. Since the average number of defects per product is 2, it means that the mean per product is 2. Hence for 32 units it is 16 divided by 2 which is 16.
Also, since the square root of variance is equal standard deviation, the square root of 16 is 4.